Laredo Hides Co. v. H & H Meat Products Co.
Texas Court of Civil Appeals
513 S.W.2d 210 (1974)
Laredo (plaintiff) contracted to buy all hides produced by H & H (defendant) through 1972, reselling them to a Mexican tannery, but after hide prices rose sharply, H & H treated Laredo's briefly delayed payment as a breach and cut off further deliveries, forcing Laredo to buy substitute hides at a much higher market price to meet its tannery obligations. Laredo sued for the cover-price differential plus increased transportation and handling costs, and the trial court entered judgment for H & H; Laredo appealed.
Whether, where there is no evidence that cover was not properly obtained, a buyer may recover as damages the difference between cover and the contract price, plus any incidental damages.